The Drag of Regulation

In today’s Washington Post, in her weekly column, “The Regulators“, Cindy Skrzycki writes about today’s Congressional hearings on regulation at which NAM President John Engler will testify. The hearing is being held by the House Government Reform Subcommittee and its new energetic and capable chair Candice Miller (R-MI).

Apparently, Skrzycki reports the minority members will have their own witness in Sidney A. Shapiro from Wake Forest University. Incredibly, he is coming to testify that regulations are not a barrier to growth. No matter – he probably thinks the earth is flat, too, another theory long ago debunked or at least widely discredited.

However, as if to bolster his fairly unique view, Skrzycki quotes the NAM blog report on the recent board meeting, below, as evidence. That is, many manufacturers are having a great year, hence no ill effects of any regulations, QED.

Had she scrolled back just back just a bit further, she would have seen the Report from Davos where even the regulation-happy Europeans are realizing that regulation saps innovation. Had the blog begun three years ago, she would have seen that we are coming off a recession where we lost some 3 million jobs. The manufacturers who are still in business are having a good year – an important distinction.

We are in a worldwide competition for jobs and investment. Congress’ job is to help create a climate — legal and regulatory — in this country that will allow manufacturers to prosper. Rep. Miller’s hearing today is an important first step down that road.